U.S. stocks rose, after the Standard & Poor’s 500 Index yesterday rebounded from the biggest weekly loss this year, amid investor optimism over corporate earnings and as data showed Chinese inflation slowed more than forecast. The S&P 500 climbed 0.2 percent to 1,565.73 at 9:31 a.m. in New York. The earnings season “will cast a positive light on the market as we expect earnings to be strong due to continued profit margin expansion and good expense management,� Eric Teal, chief investment officer at First Citizens BancShares Inc., which manages $4.5 billion in Raleigh, North Carolina, said in a phone interview. “Analyst estimates might be a little pessimistic at this point. Earnings will have the potential to surprise on the upside.� U.S. stocks rallied yesterday as investors speculated first-quarter earnings would help equities rally. Income at S&P 500 companies probably fell 1.8 percent in the first three months of the year, the first year-over-year drop since 2009, analyst estimates compiled by Bloomberg show. Alcoa, the first company in the Dow (INDU) to release results this season, reported first-quarter earnings that exceeded analysts’ estimates while revenue trailed projections. The company cited lower metal prices and the impact of smelter curtailments in Spain and Italy for the decline in sales. The shares dropped 1.2 percent to $8.29. China Inflation A report from China showed inflation eased last month from a 10-month high, reducing pressure on policy makers to tighten credit as the economy recovers. The country’s consumer price index rose 2.1 percent in March from a year earlier. That trailed the 2.5 percent median estimate of economists in a Bloomberg News survey. The S&P 500 has more than doubled from its 12-year low in March 2009, helped by the Federal Reserve’s unprecedented bond purchases and three straight years of profit growth. The index climbed to an all-time high of 1,570.25 on April 2. Fed Chairman Ben S. Bernanke said in a speech yesterday that economic conditions were far from where he would like them to be. Monetary stimulus in advanced economies “is providing additional support for other countries through stronger financial markets, more exports,� he said in response to an audience question. To contact the reporters on this story: Tom Stoukas in Athens at astoukas@bloomberg.net; Lindsey Rupp in New York at lrupp2@bloomberg.net To contact the editors responsible for this story: Andrew Rummer at arummer@bloomberg.net; Lynn Thomasson at lthomasson@bloomberg.net

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